1. Business Development , International Trading Business Unit
Aluminium Trading
Submitted by
Salute Wonghiriwat
Business Development , International Trading Business Unit

2. Executive summary IDEA RESULTS
Diversify from core business of PTT by developing non ferrous metal trading
Start with the biggest and most potential metal : Aluminium
Leverage Trading Business Unit’s relationship with oversea supplier on supply side
Leverage Oil Business Unit’s relationship with domestic customers on demand size
RESULTS
Obtain oversea strategic partners in developing Thailand market
Develop 2 spot cargos and 1 long term contract in 2015 : total 3500 MT.
Total revenue (half year 2015) = 250 million THB

3. Purpose of aluminium trading
To increase revenue for other commodities to meet business unit’s goal
To diversify product line from core business
To leverage relationship with existing customers (both selling and buying sides)
To build capability of existing workforce on the new product and market

4. Background of aluminium trading
We found that many leading trading companies trade other products besides oil and gas
World class trading houses
We need to find other product to step into, having selection from world’s commodities
World’s commodities
Energy
Petrochemical
Metal
Agricultural
Textile

5. Background of aluminium trading
Commodities selection
Criteria
World & region volume
Potential growth
Complexity
External & internal capability
Low complexity
Worldwide trade
Growth potential
Strong partners

6. Aluminium trading in Thailand
Annual consumption : 260k MT Supply chain
End users
Producers
Trading firms
Alloy producers
Cable makers
Extruders
Packing makers
Kitchenware makers

7. PTT’s strengths and advantages in Aluminium trading
Relationship with supply side as trading partner
Relationship with Thai customers as energy supplier
Developable Trading facilities such as paper trading and logistic management
Current flow
Targeted flow

8. Results and Returns Stake holders Financial (2015)
PTT Trading Business unit : developing capability of trader and operation
PTT Oil marketing team (special product dept.)
Oversea trading firms : strengthen relationship by being strategic partners
Domestic customers (end users) : offer competitive product and condition
Financial (2015)
Revenue : 250 million THB (approx.)
Margin : 1.1 million THB (approx.)
No commercial risk
PTT Share of Thailand import : 1%

9. END